Little joy for SMEs in 2023 budget

Buy NZ Made executive director Dane Ambler says small businesses were hoping for more support from this year’s budget.

"Small businesses have shown resilience to get through the past year, dealing with natural disasters and skills and labour shortages.

"Small and medium-sized businesses in New Zealand employ more than 600,000 people. As the cost of living continues to rise, we need to make sure we’re supporting each other and our communities."

Research suggests two-thirds of every dollar spent at a local retailer stays local, so giving our small businesses a boost would almost certainly trickle down to help keep Kiwis in jobs, Ambler says.

"We have seen great support for small businesses over the past few years, but now is not the time to turn off the tap, they need support during this difficult time."

Last year, the government earmarked $100 million of capital funding for a Business Growth Fund. Although the investment intent was welcome, small businesses were let down by the execution.

Decreasing tax rates, increasing the GST threshold for companies, accelerated depreciation for manufacturing or direct investment in certain sectors could have made a tangible difference for many small businesses and sole traders.